Cat Cafe Business Overview

Cat cafés combine the welcoming atmosphere of a coffee shop with the joy of spending time with cats. These establishments create spaces where visitors can enjoy beverages and light meals while interacting with felines in a comfortable, home-like setting. The concept originated in Taiwan in 1998 and has since spread globally, with over 155 locations operating throughout the United States.

These businesses serve two distinct purposes: providing a relaxing café experience and offering meaningful interactions with cats. Many cat cafés partner with local animal shelters, creating temporary homes for cats awaiting adoption. This arrangement helps shelters extend their reach while giving potential adopters a chance to interact with cats in a natural environment. Other cafés maintain their own permanent group of resident cats, while some utilize a mixed approach with both adoptable and resident cats.

The most common business models in this industry include:

• Adoption Partnership Model: Working with local animal shelters to house adoptable cats and facilitate pet adoptions
• Permanent Resident Model: Maintaining a group of café-owned cats that live at the location full-time
• Hybrid Model: Combining both permanent resident cats and adoptable cats in the same space

Related: Checklist To Start a Business

How Do Cat Cafés Make Money?

Cat cafés operate with a dual-income structure, combining traditional café sales with specialty animal interaction services. Their income primarily comes from charging admission fees, typically $10-20 per hour, which allows customers to spend time in designated cat areas. This steady stream of entrance fees helps offset cat care costs while providing a consistent source of income independent of food and drink purchases.

Beyond admission fees, these establishments earn income through their café operations, selling coffee, tea, and light refreshments. Many locations have expanded their retail offerings to include cat-themed merchandise such as t-shirts, mugs, and artwork. Those partnering with shelters may receive a portion of adoption fees when cats find new homes through their facility.

Special events represent another significant income source for cat cafés. Many locations host regular activities such as cat yoga sessions, painting classes, and private parties. These events often command premium pricing and help maximize the use of the space during slower business hours. Corporate events and team-building sessions have also become popular, particularly in urban areas where companies seek unique experiences for their employees.

Industry Statistics

Cat cafés combine food service with animal companionship, falling under NAICS code 722515 – Snack and Nonalcoholic Beverage Bars. This section presents data to help potential business owners understand market conditions and opportunities in this industry.

Cat Café Industry Size & Growth: The cat café segment has shown steady expansion since its introduction to the market. Consumer interest in these unique establishments continues to rise, particularly in urban areas where many residents cannot keep pets in their homes. The industry is projected to grow at an annual rate of 6.1% through 2028, driven by increasing demand for experiential dining and the growing acceptance of cats as therapeutic companions (Webinopoly).

Number of Cat Cafés: Currently, 155 cat cafés operate across various locations, with a strong presence in major metropolitan areas. The industry remains largely composed of independent operators, with no single company controlling a significant market share. This fragmented market structure allows room for new entrants to establish themselves in suitable locations (Meow Around).

Cat Café Average Profit Margin: Profit margins in this industry average 4.9%, comparable to traditional coffee shops. This figure accounts for both food service revenues and admission fees for cat interaction areas (IRS).

States with Most Cat Cafés: California, New York, and Florida lead in the number of cat cafés, with concentrations primarily in urban areas. These locations benefit from dense populations and strong tourist activity, which help support sustained business operations (Meow Around).

Costs To Start a Cat Café

Starting a cat café typically requires between $80,000 and $300,000. The amount needed varies based on location, size, and whether you’re renting or purchasing a space. Here are some of the main expenses involved in opening a cat café:

Building and Renovations: The space will need separate areas for the café and cat lounge to comply with health regulations. This includes installing proper ventilation systems, creating separate entrances, and building barriers between food preparation areas and cat spaces. Costs typically range from $20,000 to $100,000.

Equipment and Supplies: Coffee equipment, refrigeration units, food prep stations, and initial inventory need consideration. Beyond standard café equipment, cat-specific items like climbing structures, beds, litter boxes, and feeding stations are necessary. These combined costs often fall between $25,000 and $75,000.

Furniture and Fixtures: Both the café and cat lounge areas require appropriate furnishings. This includes tables, chairs, couches, cat trees, wall-mounted platforms, and storage solutions. The cost generally ranges from $15,000 to $35,000.

Initial Cat Care: For cafés housing permanent resident cats, expenses include adoption fees, veterinary care, vaccinations, and microchipping. Those partnering with shelters may have reduced costs but still need to invest in ongoing care supplies. Initial cat-related expenses typically range from $5,000 to $15,000.

The costs provided represent general estimates, and actual expenses will differ depending on your location and specific business plan.